TSMC has sued former senior executive Lo Wei-jen for allegedly leaking trade secrets to Intel after retirement, raising major concerns over confidential chip process data and triggering a prosecutors’ investigation.

Intel's controversial hiring of former TSMC senior vice president Wei-Jen Lo has escalated into one of the semiconductor industry's most sensitive personnel disputes in years. The situation has become tangled in legal uncertainty,

TSMC sued the executive, Wei-Jen Lo, on Tuesday. It alleged that Lo violated a nondisclosure agreement by joining Intel as a vice president after his retirement from the Taiwanese company. In a message to employees Wednesday morning, Tan defended the hiring and said the company stands behind its principles.

Wei-Jen Lo, a longtime TSMC leader who quietly reappeared at Intel only months after retiring, is now reported to have left with extensive N2, A16, A14, and post-A14 process documents, triggering scrutiny over his sudden move and a TSMC investigation into possible stealing of trade secrets.

Chip stock Intel ($INTC) found itself in the middle of a bit of unexpected controversy as reports emerged suggesting that former Taiwan